UKGC Withholds Allwyn Sanctions Legal Advice
Regulator cites legal privilege in refusing to release a key document from the National Lottery licence award process.
The UK Gambling Commission has refused a Freedom of Information request for the legal opinion it used to clear National Lottery operator Allwyn of connections to sanctioned entities. The regulator cited Legal Professional Privilege, stating the public interest in protecting confidential legal advice outweighs the interest in disclosure.
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The UK Gambling Commission (UKGC) has refused to release the legal opinion it relied upon to determine that National Lottery operator Allwyn had no involvement with sanctioned entities. The decision came in response to a Freedom of Information (FOI) request dated 19 December 2023.
In its response, the regulator confirmed it holds the document but has withheld it under Section 42 of the Freedom of Information Act, which provides an exemption for information subject to Legal Professional Privilege (LPP).
The Withheld Document
The FOI request specifically sought the "assessment and/or opinion" that UKGC CEO Andrew Rhodes, in a letter to a parliamentary committee, described as being "independently verified by legal professionals." This legal opinion was a crucial piece of evidence used by the Commission during the bidding process for the fourth National Lottery licence to clear Allwyn of any problematic associations.
The UKGC's decision to award the lucrative 10-year licence to Allwyn in 2022 faced intense scrutiny, partly due to questions raised about the company's historical business ties.
Why Was the Information Refused?
The Commission argued that the document constitutes legal advice provided to Allwyn by its own lawyers, which was then shared with the regulator on a confidential basis during the licence application. According to the UKGC, Allwyn continues to assert privilege over the document.
LPP is a legal principle that protects confidential communications between a lawyer and their client. The UKGC conducted a public interest test to decide whether to release the information despite the LPP claim.
In its reasoning, the Commission stated:
- For disclosure: There is a public interest in transparency and ensuring the UKGC can be held to account for its decision to award the licence.
- Against disclosure: There is a "strong public interest" in companies like Allwyn being able to seek and receive frank legal advice without fear of it being made public. The UKGC argued that releasing the document could damage future decision-making, as applicants might become less willing to share sensitive information with the regulator.
Ultimately, the UKGC concluded that "the public interest is better served by withholding this information" to safeguard the principle of confidential legal advice.
What This Means for Consumers
This decision highlights the limits of public transparency when commercial sensitivities and legal privilege are involved in major regulatory processes. While the UKGC has repeatedly stated its satisfaction with Allwyn's suitability, this refusal means the public and Parliament cannot independently scrutinise the specific legal assurances that underpinned that conclusion.
The refusal prevents a full public understanding of the legal reasoning that cleared the new National Lottery operator on the critical issue of sanctioned entities. While two other documents related to the bidding process were released, the key legal assessment remains confidential.